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LegacyConnection
Kevin Spafford, CFP®
Comprehensive succession planning will give a voice to your operation. What is meant by this is that it forces a focus on the needs of your operation, which in turn causes you to think through all the variables involved in creating a multigenerational, successful business. If you imagine your business speaking to you and telling you what it needs to continue into the future, then one of the first things it will mention will be the need for a capable...

LegacyConnection
Kevin Spafford, CFP®
Succession planning is a unique experience, and the results of good planning may be the greatest accomplishment of a family business owner. Success is predicated on the chemistry of the family, the integrity of the operation, the forethought of the owner and the composition of tools and techniques used to satisfy the objectives.
Succession planning is not an event; it’s a process. However, that process is comprised of a series of simu...

LegacyConnection
Kevin Spafford, CFP®
The final step in the succession planning process will involve constantly staying up to date with the countless variables that can influence your business. Tax laws, market conditions and family dynamics are just some of the variables that may impact your succession plan. You and your team of professionals should review your succession plan on an annual basis, at the very least.
It’s essential to ensure that your succession plan alwa...

LegacyConnection
Kevin Spafford, CFP®
The success of planning is strongly influenced by the quality and the quantity of communication within the family. A family with good communication channels can overcome the seemingly impossible, whereas a family who can’t speak candidly will face nearly insurmountable challenges.
Five keys to good communication include:
Clearly define your objectives or the intent of each interaction. Before you engage in a conversation, writ...

LegacyConnection
Kevin Spafford, CFP®
There are a number of conflicts and emotional issues that can exist in a family business. Most are the result of the overlapping concerns between business decisions and family matters. The succession planning process brings these problems to the surface and might fester to cause conflict and emotional upset. Parents should be aware of the following circumstances where concerns arise:
Unqualified Children: Too many owners don't or won't ...

LegacyConnection
Kevin Spafford, CFP®
For farmers, late fall is for harvest, for families it’s for holiday dinners, and for family agribusiness owners it’s for planning. Like planting in the spring, farmers should think of planning in autumn. A comprehensive succession plan is your opportunity for renewal. Fall is a time of optimism and rejuvenation.
As autumn now wanes and winter begins, it's a good time to gather the family and review your succession plan. If you don&...

My work brings me face to face with the very best agripreneurs in the nation. As a succession planning professional and a subject matter expert for the media, I’m paid to learn the hows, whats and whys of entrepreneurial success. Every encounter is a learning opportunity. Most stretch my rather conventional brain beyond normal dimensions and allow me to absorb some facet of business, succession or family that I’d hadn’t otherwise fully appreciated. Some visits take me by su...

LegacyConnection
Kevin Spafford, CFP®
Do you prefer to go it alone? For home improvements, maintenance around the store or routine automotive service, would you rather do it yourself? Like many of your farming neighbors, you may revel in showcasing your tendency for self-reliance and independence. For most entrepreneurs, knowing they can do it better is what gave them the confidence to start a business in the first place. For the confident do-it-yourselfer, succession planning may be ...

LegacyConnection
Kevin Spafford, CFP®
We’ve all done it - lashed out at something or someone for no particular reason. Emotions are inconsistent and uncontrollable. Although they often direct our actions, emotions should not be used to determine the suitability of a business decision. One of the biggest blunders any business owner can make is allowing emotion to dictate business decisions.
Non-emotional, objective decisions promote rational, consistent, and fair outcomes. Emo...

LegacyConnection
Kevin Spafford, CFP®
Too many business owners give too much credit to material asset value, plant, property, intellect, etc., and too little value to people and processes. The dollar value of a company is based on a whole bunch of variables most of which are easily measured in an appraisal, some of which are based on a gut-level feel and lots of experience. What if you could apply an appraised value to people? What value do your loyal employees bring? And, how much in...

LegacyConnection
Kevin Spafford, CFP®
By the sound of his voice, he was sincerely stressed, to the end of his rope, as parents often declare. In trying to explain the situation, he began with phrases like ‘difference of opinion,’ ‘personality conflict’ and ‘lack of respect.’ Those terms quickly gave way to ‘intolerant,’ ‘insubordinate’ and ‘defiant.’ But, from my point of view and in working with this family, it w...

LegacyConnection
Kevin Spafford, CFP®
Any month of the year is the perfect time to review and make plans for the seasons ahead. Compare achievements to intentions and devise plans to finish strong. In a family business, family members fill a variety of roles. Besides a place in the family hierarchy, parents, sons, daughters, siblings, and grandchildren may also be part of the ownership group. As a result, the lines separating family matters from business decisions may cause confusion....

LegacyConnection
Kevin Spafford, CFP®
“One Ontario Family’s Joint Path to Farm Succession” by Maggie Van Camp is loaded with good advice, communication hints, and planning tidbits to encourage succession planning. The story of McGregor's Produce and the proprietary family is probably not unlike yours.
The McGregors had a successful multigenerational farm business. Their kids grew up and wanted to work in the family operation. They got married and thought their spous...

LegacyConnection
Kevin Spafford, CFP®
Planning for succession is a process. Since most plans are implemented incrementally, as in a gradual ownership transition, the end result isn’t really knowable. However, the process will have a lasting impact on the owner[s], the family, and the farm. Over time, it will become clear whether the family’s plan for succession is measured in gratifying milestones or grinding on participants like a millstone.
For most, success...

LegacyConnection
Kevin Spafford, CFP®
A buy/sell agreement may be the most important, yet most misunderstood and unappreciated document in the succession planner’s arsenal. In its most basic form, a buy/sell agreement insulates the operation from unwelcome owners. It ensures an opportunity for the business to continue when faced with catastrophe, i.e.: death or disability of an owner. A well-crafted buy/sell agreement may serve as referee for disputes between owners before they ...

LegacyConnection
Kevin Spafford, CFP®
What if succession planning didn’t get mired in emotion and tangled in a web of dissension? Experience shows families hesitate to engage in the succession process due to a ‘powder keg’ of explosive issues.
What if succession planning were simplified and measured against some quantifiable value? Every element of a Comprehensive Succession Solution has the potential to save money, mitigate taxes, decrease unnecessary...

LegacyConnection
Kevin Spafford, CFP®
Not that we didn’t already know…
On March 17th the USDA released ‘Family Farms are the Focus of New Agriculture Census Data’ and declared that 97% of all U.S. farms are family-owned. The summary of the report goes on to say, “Family-owned farms remain the backbone of the agriculture industry,” and I might add, the soul of our rural communities. With these facts, the dissension and demagoguery should stop. An a...

LegacyConnection
Kevin Spafford, CFP®
If you haven’t seen the TEDx presentation, "Pushing Boundaries In Agriculture", by Robert Saik, CEO of Agri-Trend, you should. To date it’s had over 76,000 views on YouTube. Robert Saik is a leader. He’s speaking out and sharing a story about the science behind agricultural production. Through a message that explains the how and why of GMOs, he refutes the demagoguery and misinformation that’s in vogue with today&...

LegacyConnection
Kevin Spafford, CFP®
“What is leadership?” That age old question has been teasing us for generations. Gurus often cite the characteristics of a leader. Others quote famous passages from field generals of yore, and still others share examples of respected titans of business they hope will exemplify the leadership qualities we all aspire to. Yet, the question itself is almost unanswerable.
But, a person can learn leadership skills. He can act in a leaders...

LegacyConnection
Kevin Spafford, CFP®
He came in to discuss succession planning. Jim had just inherited his grandfather’s farm. Though not a farmer by trade, his background in equipment repair caused him to know just enough to be dangerous. The first component of a comprehensive plan is a sustainable business model, so I outlined the premise for our discussion and he launched into an explanation of his situation.
The ground had been fallow for most of the last forty years. Some...

LegacyConnection
Kevin Spafford, CFP®
Without a plan for assimilation, even a well-educated, career tested, son or daughter will suffer a lack of respect and tests of authority from an operation’s existing leadership team. In succession, we often work through the ‘parents to partners, children to colleagues’ transition. But we rarely discuss overcoming the challenges of introducing a next-generation family leader into a current leadership team.
There’s a natur...

LegacyConnection
Kevin Spafford, CFP®
To work on the farm is to work in the family business. For your adult children, with families of their own and real life responsibilities, the decision to come home is often based on dollars and cents more than desire and raw emotion. So, you must create the assurance of future opportunities and the security necessary for them to raise a family.
To do so means establishing a more business-like structure on the farm than may exist today. Young p...

LegacyConnection
Kevin Spafford, CFP®
Planning for succession is a serious business. The endeavor may require the assistance of legal, financial, and accounting professionals. Some cases may call for the oversight of a family business consultant or even a family psychologist. Your goals, the family’s circumstances, and business matters will dictate the type of professionals who should be involved in your planning process.
To facilitate the discussion and keep things moving in ...

LegacyConnection
Kevin Spafford, CFP®
Though based on the growing prospects for ‘Wall Street’ investors in agriculture, the article Barbarians at the Farm Gate in The Economist (January 3rd, 2015) points out several opportunities and some obligations for today’s farming professionals. Among the latter is the unstated but implied duty to plan for succession, if remaining a family in farming is your ultimate goal.
The article starts with the premise that we’ll...

LegacyConnection
Kevin Spafford, CFP®
Like many things, planning for succession depends on the relationship among the family and your advisors, on planning methods and thoroughness of the process, on the information provided and the recommendations made, on the complexity of the case and the attitude of the decision-makers, and on plan implementation and lasting results.
Resistance is normal, especially for a hard-charging, independent agripreneur. It can get in the way and derail ...

LegacyConnection
Kevin Spafford, CFP®
The succession planning process can be difficult. It can be intrusive, and uncomfortable. But it also can be the single greatest achievement for a family business owner. It’s just one of the many challenges you’ll face in growing your operation forward. Though each person’s methods for coping with these challenges may be different, the leadership characteristics necessary to achieve success are eternal.
The character of ...

LegacyConnection
Kevin Spafford, CFP®
It’s hard to pinpoint the primary beneficiary of a well-implemented succession plan.
But it’s easy to see that a successful business with a long term perspective, adequate financial resources, and a growing bench of capable leaders, is far more attractive than a business that may have to be liquidated at the death or retirement of the current owner[s]. Beyond that:
The owner’s family will realize immediate results t...

LegacyConnection
Kevin Spafford, CFP®
John wanted the whole farm, all the land, the working facilities, outbuildings, and equipment. “How else am I going to continue the operation?” he quipped. Janice, his sister, wanted her fair share, whatever that may be… And grandma was stuck in the middle, wishing she could solve the problem, hoping her decision would not alienate one or the other of her grandchildren, and wondering why her husband didn’t solve the ...

Like the half-filled glass of water, for a dedicated business owner it’s either the end of a year or the beginning of the next. Is now the time to commit to the succession planning process?
Lately I’ve been working with family operations to define roles/responsibilities related to growing capabilities across the management team. Though a big exercise, it starts with commitment and each step along the path helps the people involved prepare the next and the next one after that&...

LegacyConnection
Kevin Spafford, CFP®
Effective dialogue will help you achieve your succession objectives.
Meeting on a regular basis through the discovery, design, and implementation phases of succession planning will not only expedite the process, it will keep all active parties informed. It may take a series of formal meetings to clearly pin-point your goals, research alternative transition methods, make decisions, and implement recommendations. Before you begin, establish p...

LegacyConnection
Kevin Spafford, CFP®
Though they come in many different forms and from a variety of experiences, a mentor is far more than a luxury for those who aspire to extraordinary achievement. A mentor, be it a family friend, distant relative, experienced neighbor, classroom instructor, co-worker, or written biography, can give guidance and lend confidence to an aspiring leader. A mentor should be standard equipment for every protégé desiring to make a difference....

LegacyConnection
Kevin Spafford, CFP®
“…the quick and the dead,” is a commonly used refrain from Tom Peters. Though the comment probably originated as a reference to gunfighters of old, the sentiment rings true when referencing business leaders today---albeit with significantly less carnage.
Leadership is the core of family business. Without a strong, agile, and insightful leader, a business is not likely to prosper and may well be on the path to extinction. Succes...

LegacyConnection
Kevin Spafford, CFP®
Given the complexity of planning for succession, you need an advisor who knows:
Business
Economics
People development
Marketing/sales
Agriculture
To do it correctly, you’ll need a facilitator who can lead a multidisciplinary team of professionals and guide the family.
The process is never once and done. Though we make it appear doable, it’s neither simple nor easy. Selecting the right person to guide...

LegacyConnection
Kevin Spafford, CFP®
Following a defined process for succession will improve efficiencies and promote desired outcomes.
For the business owner, nothing is more precarious than transitioning the operation from one generation to the next. For most owners, the business represents a lifetime of work. It is a testament to effort and the result of a lot of angst. When you consider retirement, or the next venture in your vocational life, you can’t just walk away fro...

LegacyConnection
Kevin Spafford, CFP®
“Tell us the rules and we can play any game.” Ed Rust, President State Farm (1958 - 1985), was known to say. For a family business, the rules of engagement come in the form of a family employment policy. The policy should apply to all relatives who may be interested in working in the family organization.
As a clear and concise document, the family employment policy should spell out, in specific terms, the conditions in which a membe...

LegacyConnection
Kevin Spafford, CFP®
Outside forces---the estate tax, government regulation, environmental activists, a cyclical economy---will not do nearly as much damage to the integrity of the family farm as a lack of open and honest communication. Either by design or default, a family who refuses to talk about the future and plan for the inevitable is destined to fail.
If you’re committed to continuing the family farm, preserving a legacy, and creating an opportunity fo...

LegacyConnection
Kevin Spafford, CFP®
Though it’s a family business, a farm owner must separate operational decisions from family matters. He must be able to work with the team, give direction, hold people accountable, and expect results without the threat of an emotional meltdown around the dinner table.
Being dad is a whole lot different than being boss. And though both have authoritarian responsibilities, the former is founded on familial relationships and the latter is ...

LegacyConnection
Kevin Spafford, CFP®
The demands of a changing industry, the needs of a growing operation, and the desires of family business owners require a leader who’s engaged in professional growth and personal development.
A leadership development plan should be in writing, not just a concept. If it’s not written, it’s not real. A comprehensive plan includes components of:
Education – formal classroom study, seminars, and relevant wor...

LegacyConnection
Kevin Spafford, CFP®
An effective family meeting is formal. To do it right, the gathering should be scheduled. It should follow an agenda. The meeting should foster a safe environment, one in which everyone is welcome to speak and share openly. And, it should conclude on time, with next steps, and a follow-up meeting date set.
Using our Interactive Family Meeting Agenda will start you on the right track and help keep everyone informed and engaged along the way.
...

LegacyConnection
Kevin Spafford, CFP®
Having just completed five succession planning workshops for American Soybean Association, I’m keenly aware of both your need to and your hesitation for initiating the succession planning process. Yet waiting doesn’t make it any easier. In fact, time is your ally as well as your nemesis. As the latter, time gives us false hope and causes us to think there’s always tomorrow…
As the former, the more time we ...

LegacyConnection
Kevin Spafford, CFP®
By now, you’ve read that Waggoner Ranch of Vernon Texas, at 510,000 acres, one of the largest in America, is on the auction block. After years of court battles and millions in legal fees, the heirs ran out of chances.
Though we may never know what started the fight, we can be assured that a once powerful family in farming is now casting about for remnants of what was, and asking if it could’ve been different.
Families are at ...

LegacyConnection
Kevin Spafford, CFP®
"Key person" is a rather self-explanatory term. Any person who performs a critical function and/or offers a unique skill may be a key employee. When used loosely, people think of a long-term or loyal employee, but that’s not necessarily the case. A well-seasoned employee may add value to the organization, yet not necessarily provide a ‘key’ element to its continuing success.
A key person is crucial to operational...

LegacyConnection
Kevin Spafford, CFP®
Jim Collins, the author of Good to Great, is noted as saying, ‘good is the enemy of great.’ In succession planning, good intentions are the enemy of real commitments.
Most farmers and agribusiness owners have a good idea of what they want to achieve in succession. In their minds they know the abstract who, when, and how of their transition. Unfortunately, most of those ideas are a bit fuzzy and undefined. In describing thei...

Ready to begin the succession planning conversation? Plan to participate in one of the upcoming workshops in Moline, IL (December 04, 2014) or Columbus, OH (January 15, 2015). The events are presented by American Soybean Association, in partnership with eLegacyConnect. Online registration for both events is open now.
For more, take a look at this brief video from RFD-TV:
Click to view; 3:47 min.
The decision is yours; choose to make 2015 a year of commitment ...

LegacyConnection
Kevin Spafford, CFP®
As every farmer knows, harvest doesn’t just happen. It’s the result of months of work, planning, and preparation. We all reap what we sow, and while many consumers might not fully appreciate the cultivation and care that produces a crop, a farmer certainly does.
It’s the same with succession. If long-term success, multigenerational wealth and growing opportunities are your goal, a comprehensive succession plan is a must. A w...

LegacyConnection
Kevin Spafford, CFP®
Done right, the succession planning process requires time, money, and effort. It’s not once-and-done. Succession is a series of experiences that move the operation, the family, and the owner toward an ownership transition. Along the way, you’ll gain some financial security, prepare the next generation to lead, and fortify the integrity of the operation.
The results of the plan will stem from your commitment to the process. You mus...

LegacyConnection
Kevin Spafford, CFP®
Whether you’re among the senior, middle, or younger generation, communication is your responsibility. As co-workers, family members, partners, and employees, we owe each other candid dialogue---which includes clear statements, open ears, and certain feedback.
Aspire to follow these three guidelines in all your interactions, especially as related to family, succession, and business. It’s during those times when our:
...

LegacyConnection
Kevin Spafford, CFP®
Every family operation requires leaders with a variety of skills and a diversity of interests. Tomorrow’s leaders will fill positions and do jobs that aren’t even defined today. So, how do you measure up? Do you have the skills and abilities necessary to help grow the operation? Being fair to yourself and straightforward regarding the depth and breadth of your capabilities, consider your value proposition – what are the quantifi...

eLegacyConnect, a division of Legacy by Design, is an online succession planning community designed to provide succession solutions for farm families. The site provides many of the tools necessary to create long-term working relationships and plan for succession, including a community forum, resource center, action plan, and a roster of advisors/subject matter experts to help you navigate the succession planning process.
Also please note tha...

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